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Legislation seeks crackdown on bank overdraft fees

Sen. Sherrod Brown (D-Ohio) and Sen. Corey Booker (D-N.J.) have introduced legislation intended to in their words, “crack down on exploitative overdraft fees” that banks charge consumers when they make a purchase or pay a bill but don’t have sufficient funds in their account.

The Stop Overdraft Profiteering Act of 2018 would ban overdraft fees on debit card transactions and ATM withdrawals and limit fees placed for checks and recurring payments. It would also mandate that banks post transactions in a manner that minimizes overdraft and nonsufficient fund fees. Banks, the senators say, have been accused of reordering transactions to maximize overdraft fees and force consumers to face multiple charges.